German defense company Rheinmetall is experiencing record-breaking growth as Europe increases military spending, Fortune reports.
Since Russia’s invasion of Ukraine in 2022, Rheinmetall’s stock price has surged over 1,000%, driven by rising defense demand. With the European Union planning an €800 billion ($867 billion) defense boost, the company anticipates continued expansion in the coming years.
Rheinmetall reported €9.8 billion in total revenue for 2024, marking a 36% increase from the previous year. The company’s defense division saw particularly strong performance, with sales rising 50% to €7.6 billion. Its order backlog also reached a new record high of €55 billion, up 44%.
CEO Armin Papperger described the current period as an “era of rearmament” in Europe, presenting Rheinmetall with growth opportunities unlike anything seen before. Looking ahead, the company expects:
- Total sales to increase by 25%-30% in 2025
- Defense sales to grow by 35%-40%
While these projections fall short of 2024’s surge, Rheinmetall noted that its outlook does not yet account for recent geopolitical developments, suggesting potential further growth depending on military demand.
Rheinmetall has been expanding its operations in recent years to strengthen its position as a global defense leader. The company has invested nearly €8 billion in new manufacturing facilities, acquisitions, and supply-chain security.
In addition to producing missiles, air-defense systems, and autonomous ground vehicles, Rheinmetall manufactures tanks, including the Panther KF51 main battle tank. The company is a key supplier of military equipment to Ukraine and has facilities in Ukraine, Lithuania, Hungary, and Romania.
Rheinmetall is also looking to expand within Germany and has expressed interest in Volkswagen’s plant in Osnabrück as a potential site for production growth. Papperger stated the location would be “very suitable” and more cost-effective than building a new factory from scratch.
With European nations increasing military investments to strengthen security, Rheinmetall is evolving from a European defense supplier to a major global player. The company expects further demand as countries seek to bolster their defense capabilities in response to ongoing geopolitical tensions.
